Auto Finance

NEW YORK – General Motors Corp. said Monday that it received U.S. bankruptcy court approval to continue
honoring all vehicle warranty programs and dealer incentive plans, as well as access
to approximately $15 billion of a credit facility provided by the U.S. Treasury, and the
Canadian and Ontario governments.

This and other court orders enable
GM to assure consumers that warranty coverage on GM vehicles will continue
without interruption, whether they already own a GM vehicle or intend to buy a
new one; that genuine GM parts will be supplied; and that GM-trained Goodwrench
specialists will perform all services.

The Court granted approval for GM to
access a new approximately $33.3 billion debtor-in-possession (DIP) financing
facility from the U.S. Treasury and the Canadian and Ontario governments. The court authorized GM
to use up to $15 billion of the facility on an interim basis pending a final
order approving the full facility. This credit facility will be used, among other things, for the
company’s normal liquidity requirements, including employee wages, healthcare benefits,
supplier payments, and other operating expenses.

GM intends to make payment for goods
received and services provided to it on or after the filing date in the normal course
of business and in accordance with terms of existing supplier agreements.

In addition, Judge Robert E. Gerber
of the U.S. Bankruptcy Court for the Southern District of New York today also
granted approval for a number of other first-day motions that GM made as part of its chapter
11 filings to preserve the value of GM and facilitate an expedited sale of assets to the
New GM as a healthy business outside of the chapter

11 context. The orders granted by the
Court will ensure that the company’s business continues to function without
disruption. GM has received authorization to, among other things:

• Respect
our operating and financing agreements with GMAC, supporting continued
wholesale financing for dealers and retail financing for customers

• Pay dealers’ open accounts

• Pay essential suppliers
and logistics providers for goods and services provided before and after the
company's court filings

• Pay all non-U.S.
suppliers to GM Corporation and its U.S. subsidiaries.

• Continue pay and
benefits for employees and retirees; however, the amount of non-qualified
pension for some executive retirees may be affected

• Approved, on an interim
basis, sale procedures and a hearing date of June 30 for the proposed sale of
assets under section 363 of the U.S. Bankruptcy Code

Importantly, the Court
ordered all banks to honor employee paychecks, including those dated prior to the
company’s June 1, 2009 court filing.

GM’s president and CEO
Fritz Henderson said, “Today’s rulings provide important assurance to customers
and ensure that GM can maintain normal operations as we work to create and launch the
New GM. We will proceed with continued focus on meeting the needs of our customers
in everything we do.”

On Monday, GM filed
under chapter 11 to rapidly implement the sale of substantially all of its assets to the New
GM, which will be built from GM’s strongest operations and supported by a stronger
balance sheet and a competitive cost structure. Because GM’s sale of assets to the
New GM already has the support of the U.S. Treasury, the UAW and a substantial
portion of GM’s unsecured bondholders, GM expects the sale to be approved and consummated
expeditiously.

The case is in the U.S.
Bankruptcy Court for the Southern District of New York, with case number 09-50026.
More information about GM’s chapter 11 case is available at www.gm.com/restructuring. Court filings and
claims information are available at www.gmcourtdocs.com.

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